Cannot get Mac to deploy to simulator in Architect

I have successfully deployed to the iOS simulator using the sencha tools command line on the Mac (using the Vimeo as guidance) so I know fundamentally all the pieces are on my Mac to make this work. Now I want to deploy an Architect app, but no matter what I try I cannot get the app to deploy to the iOS sim from Architect. I get this message:

[Error] The current working directory (/Users/mweigel) is not a recognized Sencha SDK or application folder

I have fiddled with the settings for so long now in the Deploy > Simulate dialog box that I am dizzy and can't remember what I have tried or not. How is this so-called "working directory" mentioned in the error message even changed - I can't see any settings for that. I even tried double-clicking the .xds file from within the app directory in Finder to try to set the working directory and still the same message. Help!!!

Hi
even i went through this just some days ago. But finally got the thing to work
m telling u the things i have implemented. others plz correct if m wrong.
1. go to settings first
In the Project tab- URL Prefix is the path to your project in http form. Basically by using local servers like Apache. so it has to be in 'http://localhost:8080' format.
Deploy path is the path to some folder other than your project folder where u COPY your code.(later ul come to know why).
so deploy path in ur case can be /users/mweigel/Result/Project1/'
In Application tab make sure u have path to the sencha tools is put

2. go to deploy part next
here make sure u have TRUE for both the options sdktools and iossimulator
do COPY now. this will copy your project to the DEPLOY PATH you gave in ur settings

3. Do SIMULATE now. This function basically fires 'sencha package run simulator.json' command in terminal.
in ur simulator settings 2 things are important
inputPath: this is the path to the folder where u have COPIED ur project. As we gave deploy path above..the inputPath can be /users/mweigel/Result/Project1/

outputPath: this is a folder where you will get u project.app file generated. which u can use to install on a device.

4. now when u save and simulate the ios simulator will open but with a blank white screen. This is basically because a bug in architect.
Architect only makes app.html file. Whereas or deploying on simulator we need index.html
According to Phil.Strong this bug will be removed in next edition of architect. The workaround now is that we can simply copy and paste the app.html in the same project folder and rename it as index.html
again do deploy>copy and deploy>simulate>save&simulate
it should open in ios simulator now.